Yesterday, we have received the email from Income Tax Compliance for Registration for Form 61B on reporting portal.
As per Section 285BA of the Income Tax Act read with rule 114G & 114H of Income Tax Rules 1962, prescribed reporting financial institutions are required to furnish Statement of Reportable Accounts in Form No. 61B. The statement of Reportable Account shall be furnished on or before the 31st May, immediately following the calendar year in which the transaction is registered or recorded.
Statement of Reportable Accounts in Form No. 61B for the reporting period from 1st January to 31st December, 2019 were required to be furnished by the due date of 31st May, 2020, has been extended to 31st March 2021.
Our company is NBFC and we work in mutual funds and equity shares. In our other companies, we also deal in mutual funds and equity shares, so does this act apply to them as well?
My queries is, to whom is this Form 61B applicable?
Please advise your valuable response in above issue.
29 November 2021
Reporting Entity or Reporting Person is an entity which is required to furnish a Statement of Financial Transaction (in Form 61 A) or Statement of Reportable Account (in Form 61B) with the Income tax Department as per the provisions of section 285BA of the Income-tax Act 1961. Also, Under Rule 114D of IT rules 1962, any entity/person receiving Form 60 is required to report details of Form 60 in Form 61.
29 November 2021
Under the Annual Information Return (AIR) Scheme, which was introduced w.e.f. 01-04-2004, specified entities were required to report notified transactions to ITD. Section 285BA of the IT Act was amended w.e.f. 01-04-2015, and it now requires specified persons to furnish Statement of Financial Transaction or reportable account. Under Rule 114D of IT rules 1962, details of Form 60 are required to be reported in Form 61. Rule 114E mentions the nature and value of transactions which are required to be reported. Rules 114F, 114G and 114H deal with due diligence procedure for identification and reporting of reportable accounts.
29 November 2021
Requirement of filing form 61B arises for implementation of FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard). For this purpose rule 114F, 114G and 114H are to be referred. Briefly, these rules provide for due diligence procedure for identification of reportable accounts. Once a Reporting Entity identifies reportable accounts, information about such accounts is to be filed in form 61B for the calendar year by 31st of May following the end of the calendar year.
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